The efforts in the war on terror and the tsunami in December 2004 led to a drop in the number of pirate attacks on the world's oceans. This is no reason to sound the all-clear, however. The number of kidnappings in particular has increased dramatically in recent times. Political unrest and legal deficiencies impede the prevention and prosecution of pirate attacks. The risk of acts of terrorism at sea is also rising. Attacks in busy straits, like the Straits of Malacca, could have far-reaching effects on the global economy.

The current situation has prompted Munich Re's team of marine experts to publish this brochure. It provides a risk analysis of the danger emanating from piracy and marine terrorism, explains the legal position at national and international levels, highlights underwriting aspects, and describes ways of minimising the risk.